[Thehostingnews] Hosting Services Firm, SAVVIS, to Sell Content Delivery Network to Level 3
London, United Kingdom - (The Hosting News) - January 15, 2007 - Scalable hosting, network, and application services for IT infrastructures firm, SAVVIS, Inc., has entered into an agreement to sell its content delivery network (CDN) services business to Level 3 Communications, Inc. (NASDAQ:LVLT) for $135 million in cash. Upon closing, the transaction is anticipated to result in net proceeds to SAVVIS of approximately $125-130 million after fees, expenses and taxes. The purchase price is subject to certain customary post closing working capital adjustments. The transaction is expected to close by the middle of the first quarter of 2007.In March 2004, SAVVIS acquired substantially all of the assets of Cable and Wireless America, which consisted primarily of data centers, a Tier1 Internet backbone, a professional services practice and managed security business, and a content delivery network. Since then, SAVVIS has integrated the assets and grown into one of the leading providers of core IT infrastructure services focusing on hosting, data networks, data security, and data storage.Phil Koen, Chief Executive Officer at SAVVIS commented, ''SAVVIS continues to hone its strategy of delivering IT infrastructure as a service, and our customers are responding favorably. We are selling our CDN services business with confidence that those customers will be best served by Level 3's commitment and focus as they integrate CDN as a strategic piece of their business portfolio. This sale, together with the planned opening of four new data centers also announced today, will enable us to serve customers better and grow our core hosting and managed network services, which include professional services and security services, while creating value for our stockholders.''Jeff Von Deylen, Chief Financial Officer at SAVVIS added, ''SAVVIS' core hosting and network services are helping change the way businesses manage information technology. We continue to sharpen our focus on these services as the drivers of our company's growth. Adjusted for the sale of the CDN services business and the expansion of our data-center footprint, we believe SAVVIS can achieve pro forma revenue growth of 10-13% and pro forma Adjusted EBITDA growth of approximately 30% or better in 2007.''SAVVIS management's current expectations for 2007 financial results include:
Total revenue in a range of $815-835 million, including SAVVIS, Inc. is a global IT infrastructure service firm for business applications. With an IT services platform spanning North America, Europe, and Asia, SAVVIS has over 5,000 enterprise customers and endeavors to deliver secure, reliable, and scalable hosting, network, and application services. The solutions are designed to enable customers to focus on core business while SAVVIS ensures the quality of IT systems and operations. SAVVIS' goal is to enlist a strategic approach, combining virtualization technology, a global network with 25 data centers, and automated management and provisioning systems. For more information about SAVVIS, please visit: www.savvis.net.
http://www.thehostingnews.com/news-hosting-services-firm-savvis-to-sell-content-delivery-network-to-level-3-2955.html
London, United Kingdom - (The Hosting News) - January 15, 2007 - Scalable hosting, network, and application services for IT infrastructures firm, SAVVIS, Inc., has entered into an agreement to sell its content delivery network (CDN) services business to Level 3 Communications, Inc. (NASDAQ:LVLT) for $135 million in cash. Upon closing, the transaction is anticipated to result in net proceeds to SAVVIS of approximately $125-130 million after fees, expenses and taxes. The purchase price is subject to certain customary post closing working capital adjustments. The transaction is expected to close by the middle of the first quarter of 2007.In March 2004, SAVVIS acquired substantially all of the assets of Cable and Wireless America, which consisted primarily of data centers, a Tier1 Internet backbone, a professional services practice and managed security business, and a content delivery network. Since then, SAVVIS has integrated the assets and grown into one of the leading providers of core IT infrastructure services focusing on hosting, data networks, data security, and data storage.Phil Koen, Chief Executive Officer at SAVVIS commented, ''SAVVIS continues to hone its strategy of delivering IT infrastructure as a service, and our customers are responding favorably. We are selling our CDN services business with confidence that those customers will be best served by Level 3's commitment and focus as they integrate CDN as a strategic piece of their business portfolio. This sale, together with the planned opening of four new data centers also announced today, will enable us to serve customers better and grow our core hosting and managed network services, which include professional services and security services, while creating value for our stockholders.''Jeff Von Deylen, Chief Financial Officer at SAVVIS added, ''SAVVIS' core hosting and network services are helping change the way businesses manage information technology. We continue to sharpen our focus on these services as the drivers of our company's growth. Adjusted for the sale of the CDN services business and the expansion of our data-center footprint, we believe SAVVIS can achieve pro forma revenue growth of 10-13% and pro forma Adjusted EBITDA growth of approximately 30% or better in 2007.''SAVVIS management's current expectations for 2007 financial results include:
Total revenue in a range of $815-835 million, including SAVVIS, Inc. is a global IT infrastructure service firm for business applications. With an IT services platform spanning North America, Europe, and Asia, SAVVIS has over 5,000 enterprise customers and endeavors to deliver secure, reliable, and scalable hosting, network, and application services. The solutions are designed to enable customers to focus on core business while SAVVIS ensures the quality of IT systems and operations. SAVVIS' goal is to enlist a strategic approach, combining virtualization technology, a global network with 25 data centers, and automated management and provisioning systems. For more information about SAVVIS, please visit: www.savvis.net.
http://www.thehostingnews.com/news-hosting-services-firm-savvis-to-sell-content-delivery-network-to-level-3-2955.html
